Re: PAM

[Neil Frank <nfrank@mindspring.com>]

Can someone (Dave or anyone else) explain to me (and if needed for the rest
of us)the pros and cons of us making any investment. For the sake of
discussion, I would like to hear about 3 senarios: 0% investment, 50 %, 100
%. I wonder if the only advantage is that with substantial and perhaps
increasing larger initial investment, it increases the chances for PAM to
initially succeed. As Merrill warns, it may not succeed ...then an
investment can mean a continued investment.  If it succeeds, and stays in
the black, then we start to receive a share of the profits. Do we have a
reason to have such profits? 

 At 04:29 PM 10/20/1999 -0400, krandall@world.std.com wrote:
>At 09:11 AM 10/21/99 -0400, Robert P. Cashin wrote:
>>      At last, we have a decision, we are unanimously in favor of PAM.  Now,
>>the next decision is "Do we want to invest in PAM, and if so, how much?"
>>
>>      To review, a zero investment would give us zero influence on policy and
>>content.  
>
>I don't believe that a zero investment equals zero influence.  PAM needs
>_us_ too.  We will turn over our members to PAM as subscribers, and will be
>paying part of our dues toward the magazine.  This is a pretty hefty slice
>of influence.  
>
>>An investment around $3000 would make us a majority share
>>holder and give us the maximum influence, but still not control, we have
>>to allow the editor some leeway and he probably wants a lot.  An
>>investment in between would give in between influence.
>
>I have come to feel that it would be best for AGA and PAM to have a
>consumer/service provider relationship, at least at this point in time.
>The more I think about it, the less I think that AGA would be able to
>continue it's majority shareholder position until the magazine actually is
>running in the black.  
>
>I think that AGA has a lot to offer PAM and vice versa.  An arms length
>distance might make it easier for us to make decisions.  If we are _really_
>unhappy with how things are going, (and I don't think we will be) we can
>always, with notice, just withdraw from the project.  Then we could go back
>to publishing a hobby journal that we felt was a better fit for our
>members.  If we have a large amount of money invested, this is a much
>harder decision to make.  
>
>While it would be nice if PAM takes off like a rocket, and runs in the
>black very quickly, I don't know that that is a realistic expectation.
>Will we be happy if we've invested as much as we can and we _still_ can't
>maintain our majority stock holder position?
>
>Karen
>
>